Know that startup money 'isn't going to flow forever'

Centro's founder on why entrepreneurs always should prepare for the worst

SHAWN RIEGSECKER, FOUNDER, CENTRO

Riegsecker founded Centro, which offers a platform that advertising agencies can use to automate digital ad purchases, in 2001. Interest in automating different areas of business will be big in 2015, he said.

“The thesis of Web-based process automation for industries is one of the largest global investment theses that’s taking place,” he said. “Anything that can be automated that we don’t enjoy doing is going to become automated.”

He said that will involve a move away from entrepreneurs building consumer-focused apps.

“That is now becoming passé,” he said. “The focus is really on building platforms. The focus especially is on B-to-B platforms. Looking at every function from finance and HR and marketing and sales and advertising — bringing that all together is very important. There’s been such a focus on B-to-C companies, but B-to-B platforms are really a huge growth sector for the economy right now.”

Riegsecker also emphasized the need for entrepreneurs to prepare for the worst.

“Really since 2010, there has been a lot of liquidity and investments available to fund startups,” he said. “I think every entrepreneur, just because of the nature of the calendar, needs to start preparing for when the next downturn cycle is going to be, because money isn’t going to flow forever — ensuring you have a plan in place ahead of time. If you have cash, watch it very closely. If you need to go raise — make sure that you’re preparing ahead of time for that.”